Canada insurance rates

Financial and professional lines rates continue to decline

Financial and professional lines rates declined 10%.

• D&O rates continued to decline.
• Underwriters remained concerned about macroeconomic issues, including banking sector challenges, labor shortage, supply chain delays, and geopolitical tensions and kept a close eye on companies' communications with shareholders on these issues.
• The fiduciary liability market remained challenging for companies with US plan assets due to the impacts of the increased frequency and severity of excessive fee litigation since 2020.
• The employment practices liability (EPL) market stabilized at the end of 2023 and remained so in the first quarter.

Cyber rates decline amid increased insurer competition

Cyber insurance rates decreased 5%, driven by excess layer premium reductions.

• New market entrants, increased capacity, and increased insurer competition in excess layers contributed to the decline.
• The scope of cyber coverage continued to broaden, typically including removal of coinsurance requirements and increasing sub-limits for coverage enhancements.
• Underwriters continued to look for improvements in cybersecurity controls.